Commerzbank plans significant job cuts in major post-bailout overhaul

Germany’s second biggest bank, Commerzbank has announced plans to cut 9,600 jobs, or a fifth of its workforce, over the next four years. The move is part of a restructuring plan put in place after the bank's bailout. Commerzbank will also suspend dividend payments for the first time.

The bank’s announcement comes at a time when Berlin has to decide whether to rescue its biggest lender Deutsche Bank which is facing a $14 billion fine from US regulators. Deutsche Bank is also expected to slash almost 9,000 jobs worldwide and 200 branches in its home market.

The problems at Deutsche Bank have raised questions about the health of other big European lenders. Some analysts are worried the bank’s woes could invoke a financial crash even bigger than in 2008.